Question

1. What are the roles of comparative and competitive advantages in Hyundai’s success? Illustrate your answers by providing specific examples of natural and acquired advantages that Hyundai employs to succeed in the global car industry.2. In terms of factor proportions theory, what abundant factors does Hyundai leverage in its worldwide operations? Provide examples and explain how Hyundai exemplifies the theory. In what ways does Hyundai’s success contradict the theory? Justify your answer.3. Discuss Hyundai and its position in the global car industry in terms of Porter’s diamond model. What is the role of firm strategy, structure, and rivalry; factor conditions; demand conditions; and related and supporting industries to Hyundai’s international success? 4. The Korean government has been instrumental to Hyundai’s success. In terms of national industrial policy, what has the government done to support Hyundai? What can the government do to encourage future success at Hyundai? What can the government in your country do to support development or maintenance of a strong auto industry?5. Consistent with Dunning’s Eclectic Paradigm, describe the ownership-specific advantages, location specific advantages, and internalization advantages held by Hyundai. Which of these advantages do you believe has been most instrumental to the firm’s success? Justify your answer.

The global automotive industry is one of the largest and most internationalized business sectors. There are seventeen major global automotive companies producing more than one million cars a year. Hyundai Motor Company is South Korea’s number one carmaker and the tenth largest in the world. It sells vehicles in over 190 countries, producing about a dozen car and minivan models, plus trucks, buses, and other commercial vehicles. Popular models in the United States are the Accent and Sonata, while exports to Europe and Asia include the GRD and Equus. In 2008, during the global financial crisis, Hyundai earned a profit of $1.3 billion—among the best in the global auto industry.